A cloud on the horizon?


IOI taking proactive measure to address allegations
According to its FY20 financials, IOI derived MYR205m or just 2.6% of its
group revenue from North America. US CBP’s investigation outcome may
only be known a few months from now and while any immediate financial
impact from a potential sanction may be relatively small, investors may
shy away from the stock for now pending further clarity. Until there is
more tangible evidence available, IOI remains a BUY with an unchanged
TP of MYR4.71 on 30x FY22E PER peg, its 5Y mean.